In the past, human was the first productive force; in the future, the system must become the first productive force.
- Frederick Taylor "The Principles of Scientific Management"
The United States at the beginning of the 20th century was a capitalist system formed jointly by enterprises with public shareholding and professional managers.
Take Ford Company as an example,
● In 1914, there were few large private enterprises, only Ford Motor Company, which opposed the public shareholding system. At the same time, it carried out a great management breakthrough and improved the method of mass production.
● Henry Ford - broke down every production task into its smallest components, adding a flow process to the production line
● Workers stood in rows, mechanically repeating the same actions over and over
● Extending to every step of production and distribution,
● Every task in the design was aimed at improving efficiency and maximizing control
● Vertically integrated the industry, internally manufacturing all products
● With more than 7000 distributors, the T-type car can be sold to the most remote towns.
The two principles are equally important for the rise of managerial capitalism.
● Innovate standardization
● Production standardization
Innovation can also be standardized.
● The U.S. Patent Office publicly displays models and blueprints of new inventions
● Relevant magazines publish open information
● In-depth articles on new technologies in "Scientific American," patent lists, and full detailed descriptions
● Gatherings for creative minds to discuss innovation; a hub for inventors
● "Crowdsourcing" and "open-source innovation"
● Western Union lent money to employees to commercialize their ideas
● Morgan invested in Edison
● Develop the ability to identify markets
● Inventors became corporate employees, and corporate research and development centers were established
After the 20th century, publicly held companies dominated by professional managers became the main driving force of the U.S. economy. These companies produced standardized products in sufficient quantities and introduced new concepts.